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From Jan to June in 2023, Global[1] EV Battery Usage[2] Posted 304.3GWh, a 50.1% YoY Growth

- From Jan to June in 2023, K-trio’s M/S recorded 23.9%

 

From January to June 2023, the amount of energy held by batteries for electric vehicles (EV, PHEV, HEV) registered worldwide was approximately 304.3GWh, a 50.1% YoY growth.

 


 

 

(Source: 2023 July Global Monthly EV and Battery Monthly Tracker, SNE Research)

 

The combined market shares of K-trio companies were 23.9%, declined by 2.2%p compared to the same period of last year, but all of them witnessed an increase in terms of battery usage. LG Energy Solution ranked 3rd recording a 50.3%(44.1GWh) YoY growth, while SK on ranked 5th with a 16.1%(15.9GWh) growth and Samsung SDI took the 7th position with 28.2%(12.6GWh) growth.


(Source: 2023 July Global Monthly EV and Battery Monthly Tracker, SNE Research)

 

Such upward trend in the growth of K-trio was mainly affected by strong sales of electric vehicle models equipped with batteries of each company. Samsung SDI continued to be in an upward trend thanks to steady sales of Rivian R1T/S, BMW i4/7/X, and Audi E-Tron. SK On posted a growth based on solid sales of Hyundai IONIQ 5, KIA EV6, and Mercedes EQA/B. LG Energy Solution recorded the highest growth among K-trio companies, propelled by sales of those global best-selling models including Tesla Model 3/Y, Volkswagen ID. 3/4, and Ford Mustang Mach-E. As the overseas sales of Hyundai IONIQ 6 and Kona (SX2), to which LGES batteries are installed, are expected to expand, it seems LGES may safely stay in an upward trajectory in future.

 

Panasonic, the only Japanese company in the top 10 on the list, recorded 22.8GWh, a 39.2% YoY growth. Panasonic, who is one of the major battery suppliers to Tesla, has most of its battery usage installed in Tesla models in the North American market. In particular, Tesla Model Y, showing a sharp increase in sales compared to the same period of last year, was a main drive behind the growth of Panasonic. The sale of Model 3 Long Range, which was temporarily halted, has resumed recently in the States. As it has been reported that LGES battery is installed in the Long-Range model, it becomes noteworthy whether there would be possible changes in the market share of Panasonic.

 

With a 56.2% YoY growth, CATL from China took up more than 30% of market share, making it as the only battery supplier in the world to take up such high market share. It maintained its top position in the global battery usage ranking. In particular, since it has tried in earnest to enter into the overseas markets beyond the Chinese domestic market, CATL has nearly doubled the growth in the European and North American regions compared to the same period of last year. CATL’s battery has been installed in Tesla Model 3/Y as well as Chinese commercial vehicles and major electric passenger vehicle models in the Chinese domestic market such as MG ZS, MG-4, GAC Group’s Aion Y, and NIO’s ET5, fueling the continuous growth of the battery maker.

BYD has boasted a remarkable growth nearly doubled from the same period of last year in the Chinese market based on its high popularity. It earned such popularity based on its price competitiveness through vertical SCM integration such as in-house battery supply and vehicle manufacturing. Recently, it has been expanding its market share in Europe and the Asian region except China with its Atto 3(Yuan plus).

 

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(Source: 2023 July Global Monthly EV and Battery Monthly Tracker, SNE Research)

 

Recently, battery makers in China tried to cooperate with companies in Korea and some of them announced the cooperation agreements in an effort to find a way out of the US IRA. In fact, if a Chinese company supplies xEV battery materials to a company in Korea, one of the FTA partners with the US, and then batteries made in Korea are exported to a US company, those collaborated parties all satisfy the IRA terms and conditions. To target those companies bypassing the regulations, it has been reported that the US government is now reviewing whether to elevate the level of regulations. It seems that the Korean companies may need to add more flexibility to their business strategies given the possibility in reinforcement of the IRA regulations. 




[1] The xEV sales of 80 countries are aggregated.

[2] Based on battery installation for xEV registered during the relevant period.